The Changing Disparity in Prices Across States

Sabrina J. Considine and Andrew Foerster

FRBSF Economic Letter, 2025, vol. 2025, issue 08, 6

Abstract: Differences in prices for consumer goods and services across states have been increasing since the early 2010s. Those differences accelerated during the pandemic and the subsequent inflation surge. Higher-price states saw faster inflation from 2019 to 2022 compared with lower-price states, leading price levels to diverge further across regions. Data show that state-level inflation was driven by both goods and services, which tended to move together rather than independently in most regions.

Keywords: prices; pandemic; covid19; inflation; Disparities; states (search for similar items in EconPapers)
Date: 2025
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